Renewed geopolitical tensions will overcast the Trumponomics and precious metals prices will rebound again this week. Gold prices have made a short-term bottom now and are expected to rebound towards Rs 75000 and Rs 77000 and silver to Rs 92000 and Rs 95000.

Gold and Silver were dumped by 2.5% and 4% last week respectively as several key events caused a lot of price volatility. US Election and announcement of Trump’s Victory, then US FED and BOE cutting interest rate by 25 bps.

Gold has been trading in the up-trend channel for the last year since $1850 (~Rs 56000). Immediate resistance in this channel is around $2800 (~Rs 80000), and support is around $2550 (~Rs 74000). The bullish view is intact as long as gold prices are in this up-trend channel.

Rising for the 23rd week in a row so far in 2024, the price of gold in US dollars has surpassed $2747 (~Rs 78200), up more than 3% from the previous week. While Silver gained 10% in only one week, reaching a high of about $34.32 (~Rs 98220).

Due to geopolitical concerns, the price of gold has continued to rise exponentially, reaching as high as $2700 this week. However, on Friday, prices began to decline again, as stronger-than-expected US employment data suggested that the labour market is still robust and that the Federal Reserve will probably soften policy by 25 basis points.

Gold accomplished a new all-time high this week of $2700 (Rs 76000), capping its third straight week of gains. Following gold’s recent climb, silver has surged as well. Its highest pricing since December 2012 was $33 (Rs 96400). Subsequently, the ratio of gold to silver dropped to 82, the lowest since mid-July.

Gold is maintaining strong bullish momentum and prices touched a new record high of $2656 (~Rs 75100) today, driven by a weakening U.S. dollar and the expectation of further rate cuts by the Federal Reserve.

Gold prices reached a new historical high of $2585 (Rs 73500) due to a weaker dollar and increased expectations of a 50-bps rate cut by the Fed.

Gold prices have fallen from recent record highs, as increasing yields and a stronger currency point to a less aggressive rate decrease by the Federal Reserve.

The present macroeconomic backdrop is creating a “perfect storm” for gold, making it one of the top-performing asset classes in 2024. Gold’s stratospheric journey to gleaming new heights has continued to accelerate this year, cementing its legendary status as the ‘must-have’ asset class in all portfolios.

Next week’s CPI report is likely to highlight this structure, and in the absence of any shocks, the data may not do much to alleviate slowdown concerns, as the attention has switched to the growth side of the story.

The gold price has risen beyond $2440 (~ Rs 68500) this week as the US dollar lowers and US Treasury bond rates fall due to dovish Fed predictions and risk-on sentiment. A rebound is expected in gold and silver prices this week as prices seem to have reached a short-term bottom.